China joins the US, South Korea, India and Malaysia in contributing to the decline in tourism to Thailand, due to economic pressures, rising costs and environmental sustainability issues: full details here

Posted on November 3, 2025

Tourism in Thailand, once a thriving sector, now faces major challenges, with China joining major markets such as the United States, South Korea, India and Malaysia in contributing to the decline in arrivals. Economic pressures, including inflation and rising travel costs, have made travel to Thailand less attractive for tourists from these countries. Additionally, environmental sustainability concerns, such as overtourism and the impact of climate change on popular destinations, further discourage visitors. As these issues combine, Thailand’s tourism sector is struggling to meet pre-pandemic levels, and its recovery efforts face increasing obstacles. This article delves into the factors affecting Thailand’s tourism industry and the long-term effects on the country’s economy.

Known for its pristine beaches, bustling markets and ancient temples, Thailand has long been a major tourist attraction. However, recent figures reveal a decline in the country’s tourism sector. According to the Ministry of Tourism and Sports, the total number of foreign arrivals from 1 January to 26 October 2025 was 26.25 million – a decrease of 7.25% compared to the same period in 2024. This decline highlights the continuing impact of the Covid-19 pandemic, despite a modest increase in travel during peak holiday periods.

The tourism industry faces unmet expectations

While the total number of arrivals appears large, averaging 86,000 visitors per day, it falls short of the government’s ambitious targets. The 2025 numbers are well below the 28.15 million recorded at the same time in 2024. The decline is largely due to lower demand from key source markets, which continue to suffer from inflation and economic uncertainty. However, daily arrival numbers have shown signs of improvement, with numbers reaching around 100,000 in recent months, raising hope for a gradual recovery despite the setbacks.

Leading markets: Malaysia and China continue to make a comeback

Malaysia remained Thailand’s largest source of international tourists, contributing 3.8 million visitors. Enduring cultural connections and convenient flight options make Thailand a favorite destination for Malaysian travellers. Immediately afterwards, China contributed 3.72 million visitors, particularly supported by Golden Week. The week-long Chinese holiday has seen a surge in bookings, with a 15-20% increase in the first days of October, filling resorts and shops in destinations such as Phuket and Bangkok.

Although these positive trends provide some relief, they were not enough to offset the decline resulting from other critical markets. Countries such as South Korea, India and the United States showed flat or declining numbers, driven by rising air travel costs and a growing preference for more accessible destinations.

Bank of Thailand lowers tourism forecast

The Bank of Thailand (BoT) recently downgraded its tourism forecast for 2025, revising the forecast from 35 million to 33 million visitors. This revised figure reflects ongoing struggles, such as the negative impact of a weak baht, which, while helping exporters, discourages cost-conscious travellers. In addition, delays in the hotel sector due to supply chain issues have hampered the industry’s recovery.

This downward revision indicates that initial optimism about the recovery of Thailand’s tourism sector was premature. The pre-pandemic peak of 39.8 million visitors in 2019 now seems a long way off. External factors, such as higher interest rates in the United States and energy issues in Europe, have reduced discretionary spending on leisure travel, resulting in fewer visitors from key markets.

Challenges in infrastructure and environment

Thailand’s tourism decline is part of a larger global adjustment following the pandemic. Chinese travellers, who were among the biggest spenders in Thailand, now prefer domestic destinations or nearby countries such as Japan and Singapore. Meanwhile, Malaysia remains a steady source of visitors but cannot fully compensate for declines from other regions.

Thailand’s infrastructure also presents challenges. Airports like Suvarnabhumi often struggle to handle passenger volume during peak travel periods. Furthermore, environmental issues, such as pollution in popular destinations such as Maya Bay, have made some environmentally conscious tourists hesitant to visit. In response, the Ministry adopted a strategy that focuses on attracting “quality over quantity” visitors. Initiatives such as visa exemptions and luxury eco-resorts aim to attract wealthier tourists, but critics say these measures may not be enough to turn around an industry that employs millions.

Economic outcome

Tourism is an important part of Thailand’s economy, contributing approximately 12% of the GDP. The decline in foreign arrivals is significantly affecting a wide range of businesses, from street vendors to five-star hotels. Industry data shows hotel occupancy rates fell to just 65% in the third quarter of 2025, leaving rooms empty and staff underutilized. This poses a major challenge, especially in rural areas where many workers depend on tourism for their livelihoods.

Thailand’s strategic push for recovery

Despite these challenges, there are still reasons for optimism. The Ministry of Tourism and Sports is promoting various initiatives, including year-end festivals and offering visa incentives to attract visitors. In addition, projects such as the high-speed rail system are expected to improve domestic travel and accessibility, benefiting tourism within Thailand.

However, achieving the goal of 40 million visitors looks increasingly unrealistic. The global economic slowdown, environmental risks such as floods, and the slow recovery of international travel all pose barriers. Experts believe that Thailand should diversify its tourism offerings, focusing more on health and cultural tourism. The Bank of Thailand also proposed investing in green initiatives to protect the country’s natural beauty, which is vital to attract eco-friendly travellers.

China joins the United States, South Korea, India and Malaysia in contributing to a decline in tourism to Thailand, driven by economic pressures, rising travel costs and environmental sustainability concerns, making recovery more difficult for the sector.

Thailand’s tourism sector is at a crossroads. Although the country’s attractiveness remains strong, there are major obstacles standing in the way of full recovery. The future of Thailand’s tourism industry will depend on how well it can adapt to changing global trends, including the growing demand for sustainability and the need for improved infrastructure. How Thailand deals with these challenges will likely determine the long-term health of the tourism sector and the broader economy.